5.75% Interest Rate ???

13 Replies

Please help me, new to this. My credit score around 800 ++ and got a 5.75% interest rate for 30 years fixed rate conventional loan. Is this sound good or bad? because i thought it going to be around 5%. Thank you all.

20% down thats the right ball park. 25% down will get you closer to 5%

I'm assuming this is a straight up investment property. I can't imagine that being the rate for live in. Even still, that seems high to me. I'm holding at around 5.2% (but haven't priced it out for about 7-10 days with my banker). Have you shopped around? 

We all knew these days would come  where interest rates would start to climb haha. Maybe it will help cool the purchase prices out there (although I speculate/guess it won't much).

This is now the new normal in investment lending interest rates have risen all year and anything around 5.5% is what most people are getting these days.

@T.Yong Ling I just got 5.75% myself for A 30/30 and that was the best one in the area...800 credit score with little debt. Another one offered 7.3%, I knew those numbers existed but I haven’t actually seen them in my brief investing lifetime. I aim to get while the getting is good for the loans.

Well from a different perspective it is basically free money. Historically we are still well below average rates. My first mortgage was 12%. 

One philosophy that applies here is the availability of money is more important than the cost of money.

Originally posted by @Ned Carey :

Well from a different perspective it is basically free money. Historically we are still well below average rates. My first mortgage was 12%. 

One philosophy that applies here is the availability of money is more important than the cost of money.

what I find very unique right now Ned is the amount of HML or private money companies led by large hedgefunds investing in these HML companies have driven these private rates down to 10% apr or less.. so to only have about a 4% spread between bank money and HML is quite unique in my experience over the decades.. other than the high interest mid 80s anomaly.. the spread was usually 10% or so..

But for sure if a deal is stressed because 6% money only works and 7 or 8% money throws it out then those are some really tight spreads to be working with.. and one would not want to be signing up for 3 to 5 year call notes. 

@T.Yong Ling , you need to shop for a lower rate. There are lenders offering less than that, especially if you have Costco membership. The recent rates l know of are 5.125% for 25% down and 5.375% for 20% down. The credit score should be 760 or more to qualify for these rates. Good luck on your investment.